MRZ.V Mirasol Resources – Displaying Typical Winning Stock Trading Characteristics

by OLIVIER on JANUARY 27, 2010

What a difference a day makes. Today’s price action with MRZ.V – Mirasol Resources made the decision on what to write about tonight a very easy one. Yesterday I outlined different scenarios I see for MRZ.V’s future price development. I didn’t expect the stock to mount such an impressive rally the very next day establishing that important new trading range.

The key point here is ‘expectation’. I do not let my entry prices cloud my judgement. I couldn’t care less about picking bottoms and selling tops. What I do care about though is a stock’s trading behaviour. I analyze a stock and after watching it for a while I draw conclusions. If the stock is acting right I open a position. Then the real work starts. I have clearly defined expectations how strong stocks are supposed to behave. My job is simply to monitor the stock’s action after I put on my position. Depending on a stock’s ability to match my expectations I reduce or add to my position.

To make a long story short: My decisions depend on a stock’s price action, not my beliefs.

Up-to-date MRZ.V – Mirasol Resources Chart on my public list.

MRZ.V has surpassed my expectations. Put another way, the stock has proven itself and is making me money. I am now willing to add to my position whenever good opportunities arise. MXI.V – Merrex Gold on the other hand has not proven itself yet. Winning traders don’t average down. There is simply no way I am going to break that trading rule. I will only buy more if the stock moves up above my entry price. If the stock keeps going down I will further reduce my exposure. Let’s see what happens.

Be very patient with your winners, they take care of themselves.

Buenas noches!